...March 24, 2022 PARIS (S&P Global Ratings) March 24, 2022--S&P Global Ratings today said that Vonovia SE's (###+/Positive/A-2) 2021 results are in line with our expectations. Vonovia posted a 3.8% like-for-like increase in rental income after 3.1% in 2020 and 3.9% in 2019. This excludes Deutsche Wohnen's contribution, after it was acquired in November 2021. Most of Vonovia's rental uplift came from market adjustments, notably after Berlin's rent-freeze law was canceled, and modernization capital expenditure. Absent COVID-19-related rent receivables this year, rent performance was slightly ahead of our 3.0%-3.5% assumption for 2021. The company should sustain similar organic growth in 2022-2023 given the strong supply-demand imbalance. This is given Vonovia's ongoing renovation program, which allows it to price higher rents, and the significant increase in construction costs, which should limit market supply in 2022-2023 and further exacerbate Germany's housing shortage. At the same time,...
